American Golf has bounced back from a difficult 2006 with a jump in sales for the year to January 27.

Total sales soared 18 per cent at the 70-store golf specialist, on like-for-likes up 10.5 per cent.

The retailer, which is owned by private equity company LDC, increased margins by 21 per cent, driven by a focus on own-label products and better negotiations with suppliers.

American Golf chief executive Andrew McDonald said: “The thing with the American Golf cycle is that the business did have a very difficult 2005/2006. So, from LDC’s point of view, that’s when we pulled our boots on and started again.”

Christmas also proved a money-spinner for the retailer, with total sales rocketing 20 per cent and like-for-likes up 7.4 per cent for the seven weeks to January 13.

McDonald also revealed that he has appointed design consultancy Four IV to work on creating a new-look store at its Northwick Park branch in northwest London, which he said would represent the “next generation” of stores. Work on the project is at a preliminary stage, but he said he expected it to be completed by April.

American Golf plans to open further stores this financial year. McDonald said: “I’d like to say that we will open five more, but it is more likely to be three. We are finding it a little bit easier to negotiate with landlords than it was.”

He added that he is considering further acquisitions. “Last year, we bought back the franchises and there may well be other chains out there for us,” he said. Last September, American Golf integrated franchise partner South West Golf into the chain.

Separately, McDonald ruled out a sale of the company by LDC and said that “no pressure” was being exerted to achieve this. LDC acquired the retailer in August 2004.